First, to the key core-element of this discussion....the total debt of California as of the end of 2020....is around 770 billion dollars (more or less).
If you were discussing the way they got to this scale of a problem....I'd have to make the 300-line essay. It took a lot of hard work, significant incompetence, and poor attention to spending habits.
So as we enter 2021 and the arriving Biden-Harris team, there's likely to be a full-scale press for 'relief', to be a 50-50 deal by the House and Senate. My belief is that they will 'gift' California a minimum of 50 billion dollars, and loan them a zero-interest package of 100 billion dollars (spread out over 20 years).
Does any of this 'rescue-package' really do much? I would suggest that it gives a year of marginal help, and the same issues arrive by the summer of 2022. You see....the exodus of people of people, the exit-strategy of retirees, and various companies moving beyond the border....leave the state with a dwindling amount of taxation dollars. It simply isn't there.
But here comes the real question....if non-Californians are paying into the federal pot of money, and all this 'free-money' is funneled out to a failing state....why should I pay the 'California-tax'?
At some point, tens of millions are going to turn to their Representatives and Senators, and ask some stupid questions. All of this will lead back to financial habits of a failed state, and wondering how 49 other states got into a gimmick like this.
The people who left California? Well....they kinda thought that as they drove past the border sign....they were finished with California-taxation. In this case....via their federal taxes....they still in some crazy way get attached to California.
Just something to think about.
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